10% drop in Paytm shares as Softbank looks to reduce stake
The change occurs immediately after the end of the investors' share trading lock-in period for Paytm.
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Following news that Japan-based Softbank has begun the process to sell a 4.5 percent stake in the company in a block sale, shares of One97 Communications, the parent company of Paytm, fell 10% in morning trading on Thursday.
The stock continued to decline after a shaky start, falling 10% to 541.30 on the BSE.
It decreased 9.98% to 541.40 at the NSE.
According to insiders, Softbank has begun the process of selling a 4.5 percent share in One97 Communications for about $200 million (about Rs. 1,627 crores) in a block sale.
The change happened right after the investors in Paytm were no longer restricted from trading their shares.
Softbank holds a 17.5% stake in the business, making it the second-largest shareholder.
Two sources with knowledge of the issue claim that Softbank has offered to sell shares it holds through its subsidiary SVF India Holdings in the range of 555 to 601.55 rupees per share.
Softbank anticipates raising about $200 million at the bottom of the 555 price range.
The deal might net Softbank a maximum of $215 million. In the final quarter of 2017, Softbank invested $1.6 billion in Paytm, and at the time of the IPO, it sold shares for $220 million.
